The world's largest producer of lithium investors pushes the fear of excessive Chinese power station and demand for the ore used in electric vehicles, encouraging a sharp stock market rally across the sector.
Albemarle's fourth quarter earnings were higher than analyst estimates, and the group expects global demand for lithium to increase by 21% annually. According to the company, the market will continue tightly for years as electric cars and large-scale electric cars are over. The shares of the group registered the largest increase in almost three years on Thursday.
From just over a week ago, the shares of the sector were subject to sales wave after the disappointment of the disappointing results from Livent Corp producer, who said that customers in China defer purchases. Albemarle said he did not see any signs of slowdown as new energy sales sales were doubled in China last year, and there are signs that the demand for electric cars will continue to benefit from government incentive programs in the country Asian.
Albemarle's forecasts for 2019 have alleviated the fears of investors at lower prices in an overlap market, said James Sheehan, analyst Suntrust Robinson Humphrey, in comment. An increase of 4% in the fourth quarter prices "supports our thesis that Albemarle can maintain a fixed price."
Albemarle stock increased to 11%, which is the major rate return in May 2016. This was the best performing bond of the S & P 500 index on Thursday. Soc. Química y Minera de Chile SA, the second largest producer in the world in Santiago, which rose by 2.4%, the second consecutive day of earnings. The shares of Tianqi Lithium Corp., the third largest, have registered the highest closing price this year.
Albemarle, who is located in Charlotte, North Carolina, which produces about one third of the world's lithium, expects prices to remain stable or increase this year. Lithium-carbonated prices, the most common type of minerals, have fallen from full-time conditions, but they still trade more than double level four years ago, according to monthly data from Buddha- benchmark benchmark information
The sales of 98% electricity vehicles increased during the fourth quarter, Albemarle CFO Scott Tozier said Thursday in a conference call with analysts. The number of plug-in hybrids and electric battery models issued by car producers by 2021 has increased by almost 40% since mid 2017. As a result, the corresponding lithium carbonite equivalent will be approximately 475,000 tonnes by 2021 and 1 million tonnes by 2025 , he said.
Large producers such as Albemarle, SQM and Tianqi will continue to dominate a place that could be saturated this year as new capacity has been added, said Luke Kissam, Chief Executive of Albemarle told analysts during the conference. With new technologies that demand more lithium, the market will continue tightly in the coming years, he said.
"The momentum around electric vehicles has continued to accelerate," said Tozier. "The demand curve has moved to a higher and more prominent level," he said, referring to lithium.